By Kirthi Devleker
Software for small businesses: India is home to the third-largest global start-up ecosystem and a remarkable 31 per cent of the country’s GDP is contributed by Indian small and medium-sized businesses (SMBs). SMBs play an important role in employment, engaging over 110 million people and constituting 40 per cent of the nation’s exports. Navigating market shifts and meeting evolving customer demands necessitates a unique blend of innovation, affordability and scalable production capabilities. Among these innovators, start-ups stand out, often leveraging cutting-edge technologies, such as AI, IoT and blockchain.
The journey towards enterprise-level innovation beckons SMBs and startups to equip themselves with a resilient IT backbone capable of supporting their ambitions and aiding their expansion. Cost-effective and scalable cloud computing solutions are key for the growth of businesses grappling with high capex costs required for procuring IT equipment. A staggering 94 per cent of business leaders in large enterprises are firm believers that AI is crucial to their success over the next five years.
In contrast, startups and SMBs often grapple with resource constraints, compelling them to search for cost-effective and scalable cloud computing solutions. In 2023, global IT spending is projected to reach $4.6 trillion, with the software segment poised for double-digit growth. However, an intriguing shift has occurred, directing new IT spending towards cloud options. The emphasis on cloud services as a cost-effective alternative driven by competitive pricing has prompted increased spending on these services, as reported by Gartner.
Leveraging tailored cloud services
While agility provides start-ups and SMBs with an advantage over their larger counterparts, they must also leverage customised cloud services to meet distinct business needs. Such customisation enables these innovators to seize opportunities and pivot promptly and it necessitates cloud support that aligns with their growth ambitions. A NASSCOM survey of 1000 SMBs revealed that 63 per cent were already leveraging cloud services, with 47 per cent of cloud users being at the initial stages of their cloud journey.
Democratising innovation with scalable solutions
SMBs and startups need access to affordable and scalable cloud computing resources. As these entities strive to innovate, business owners must integrate AI into their operations for enhanced insights to unlock value. Historically, the development of AI-enabled applications entailed substantial costs due to the need for infrastructure and resources for AI model training and deployment. This cost-intensive hurdle impelled the search for affordable experimentation solutions.
The merits of the “As-a-Service” model
The novel “as-a-service” model represents a shift, delivering a versatile range of services and applications on-demand. Forecasts indicate that the global Everything-as-a-Service (XaaS) Market is set to increase to $3,221.96 billion by 2030. These models empower start-ups and SMBs by affording them access to a comprehensive suite of services, all available remotely. Subscribing to these offerings, akin to the Pay-As-You-Go (PAYG) models, lends a competitive edge to SMBs and start-ups. With payment tied to usage, these models shatter economic barriers, enabling innovation, iteration and refinement.
As the journey of digital transformation unfolds, the combination of AI, cloud computing and agile methodologies shows the way for SMBs and start-ups. Harnessing the potential of cost-effective and scalable solutions, these enterprises not only ensure their survival but also thrive in the face of evolving business environments.
The “as-a-service” model results in technology democratisation, it removes the obstacles to innovation and paves the way for the growth of small and medium businesses., which are faced with resource constraints. Through streamlined PAYG models, economic barriers can be obliterated, thus paving the way for an era of entrepreneurial triumph, driven by innovation, agility, and affordability.
Kirthi Devleker is the Senior Product Marketing Manager at DigitalOcean. Views expressed are the author’s own.